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Intact Financial Corporation completes acquisition of specialty insurer The Guarantee Company of North America and Frank Cowan Company Limited
Intact Financial Corporation completes acquisition of specialty insurer The Guarantee Comp...
About this update from Intact Financial Corporation
[{"type":"text","content":"\n\n\n\nIntact Financial Corporation completes acquisition of specialty insurer The Guarantee Company of North America and Frank Cowan Company Limited\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\n\nCanada NewsWire\nTORONTO, Dec. 2, 2019\n\n\n\nBolsters Intact's leadership position in Canada Brings Intact's North American specialty lines platform close to $3 billion in annual Direct Premiums Written Delivers a return on capital above Intact's threshold and immediate accretion to NOIPS Strong financial position maintained, with over $1.2 billion of capital margin following closing TORONTO, Dec. 2, 2019 /CNW/ - Intact Financial Corporation (TSX: IFC) announced that it has today completed the acquisition (the \"Acquisition\") of The Guarantee Company of North America (\"The Guarantee\") and Frank Cowan Company Limited (\"Frank Cowan\"), having received all required regulatory approvals.\n\"Closing this transaction represents meaningful progress on our strategic objectives,\" said Charles Brindamour, Chief Executive Officer, Intact Financial Corporation. \"After months of working together on integration planning, we can now welcome The Guarantee and Frank Cowan employees into the Intact family. We look forward to continue to work together to advance our goals of bolstering our leadership position in Canada while building a leading North American specialty insurer.\"\nFinancially compelling transaction\nThe acquisition is expected to generate a return on capital above IFC's internal threshold and be immediately accretive to net operating income per share (NOIPS) with low single-digit NOIPS accretion within 24 months after close. \nIntact will maintain a strong capital position following closing with an estimated capital margin above $1.2 billion, Minimum Capital Test (MCT) above 195% and a debt-to-total-capital ratio below 22% at end of 2019. IFC's debt-to-total-capital ratio is expected to return to 20% in 2020.  \nSubscription receipt conversion \nThe $1.0 billion acquisition payment has been financed in part with the net proceeds from the issuance of $461 ...